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Mario has operated a chocolate-making business in Australia for the past 25 years - HSC - SSCE Business Studies - Question 26 - 2006 - Paper 1
Question 26
Mario has operated a chocolate-making business in Australia for the past 25 years. Recently there have been increases in the cost of labour in Australia. Current in... show full transcript
Worked Solution & Example Answer:Mario has operated a chocolate-making business in Australia for the past 25 years - HSC - SSCE Business Studies - Question 26 - 2006 - Paper 1
Step 1
Describe an alternative organisational structure for Mario's Australian business
Answer
An alternative organisational structure that could benefit Mario's Australian chocolate-making business is a flat organisational structure. This structure reduces the levels of management and encourages a more collaborative environment among employees. It can lead to better communication across the workforce and faster decision-making as employees at all levels are encouraged to share ideas and take initiative. By adopting such an approach, Mario can foster innovation and improve employee engagement, thus aligning with behavioural theory principles.
Step 2
Recommend ONE staffing system for Mario's proposed overseas business
Answer
For Mario's proposed overseas business, a polycentric staffing system is recommended. This approach involves hiring local staff for the foreign operations, leveraging their understanding of the local market, cultural nuances, and customer preferences. This can lead to better employee retention, as well as increased trust and rapport with local customers. Additionally, local hires can provide insights that may drive better business strategies tailored to the specific international market, ultimately enhancing the brand's acceptance and success.
Step 3
Evaluate TWO employment relations strategies which could be used to manage change if international expansion occurs
Answer
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Training and Development Programs: Implementing robust training programs for both international and local employees is crucial. This would ensure that all staff members, regardless of location, understand the company's values, objectives, and operational procedures. In a global context, this may also include cultural sensitivity training to promote understanding among diverse workforces. The effectiveness of this strategy lies in its ability to create a unified company culture that promotes collaboration across borders.
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Participative Management Style: Encouraging a participative management style where employees are involved in decision-making processes can improve job satisfaction and morale. This strategy emphasizes employee voice and contributions, making staff in different regions feel valued and relevant to the business's international goals. By fostering an inclusive environment, Mario can help mitigate resistance to change, ensuring smoother adaptations in new international markets.